Crown Beach, which is the longest beach on San Francisco Bay, is a popular destination for visitors.

Photo: Rashad Sisemore, The Chronicle

Crown Beach, which is the longest beach on San Francisco Bay, is a...

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The park at Crown Beach offers joggers and dog owners paths around the park to enjoy. The Alameda park district and the city are at a dispute over Neptune Point; the park district wants to expand the public Crown Beach, while the city and private land developers are hoping to utilize the land to build private homes. November 23, 2012 in Alameda, Calif.

Photo: Rashad Sisemore, The Chronicle

The park at Crown Beach offers joggers and dog owners paths around...

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Crown Beach visitors host small picnics and take walks along the beach front. The Alameda park district and the city are at a dispute over Neptune Point; the park district wants to expand the public Crown Beach, while the city and private land developers are hoping to utilize the land to build private homes. November 23, 2012 in Alameda, Calif.

Photo: Rashad Sisemore, The Chronicle

Crown Beach visitors host small picnics and take walks along the...

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The park district in Alameda wants to expand the visitor center at Crown Beach.The Alameda park district and the city are at a dispute over Neptune Point; the park district wants to expand the public Crown Beach, while the city and private land developers are hoping to utilize the land to build private homes. November 23, 2012 in Alameda, Calif.

Photo: Rashad Sisemore, The Chronicle

The park district in Alameda wants to expand the visitor center at...

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The park district in Alameda wants to expand the visitor center at Crown Beach. The Alameda park district and the city are at a dispute over Neptune Point; the park district wants to expand the public Crown Beach, while the city and private land developers are hoping to utilize the land to build private homes. November 23, 2012 in Alameda, Calif.

Photo: Rashad Sisemore, The Chronicle

The park district in Alameda wants to expand the visitor center at...

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Visitors to Crown Beach make use of the low tide on a hot day. The Alameda park district and the city are at a dispute over Neptune Point; the park district wants to expand the public Crown Beach, while the city and private land developers are hoping to utilize the land to build private homes. November 23, 2012 in Alameda, Calif.

Neptune Pointe hasn't seen this much excitement since it had a Ferris wheel and merry-go-round.

The site of the old amusement park in Alameda - a 4-acre shoreline plot next to Crown Beach - is at the nexus of a bitter dispute, filled with threats and name-calling, between the city and the East Bay Regional Park District.

The park district wants the land to be an extension of Crown Beach. The city wants to see up to 126 homes there. The park district filed a lawsuit this month to stop the project from moving forward.

"We believe the city has made a very serious mistake," said Bob Doyle, manager of the park district. "They're saying this lawsuit is unnecessary. Well, we never file frivolous lawsuits."

Alameda City Manager John Russo called the district's suit abusive. "It's evidence of an agency that's arrogant and out of control. They didn't get the property, so now they're holding their breath, stomping their feet and having a tantrum."

Before it was the subject of governmental infighting, Neptune Pointe was the source of much merriment and happiness. From 1917 to 1939, it was the site of Neptune Beach, an amusement park complete with rides, picnic areas, swimming pools, vacation cottages and weekend dances for visitors from throughout the Bay Area.

It went out of business during the Depression, and the federal government bought it during World War II for offices. Meanwhile, the state acquired the adjacent Crown Beach and gave it to the park district to manage.

Three years ago, the federal government decided to sell the property. That's when things turned thorny.

The park district listed Neptune Pointe in its master plan as a logical extension of Crown Beach, which is the longest and among the most popular beaches along San Francisco Bay, attracting about 1 million visitors a year. The district's hope was to expand and upgrade the 1940s-era visitor center and parking lot and add more picnic areas.

The exact timing of the next sequence of events is in dispute, but all sides agree on the following: About a year ago, the federal government auctioned off the property to the highest bidder. The park district bid $1 million in cash, based on its own appraisal. The winning bid came from Tim Lewis Communities, a home developer based in Roseville. The final sale price was around $3 million, Russo said.

Amidst all this, the Alameda City Council voted to change the property's zoning from offices to housing. Russo said this was necessary for the city to comply with state laws requiring an updated housing plan, and that ultimately, the city had little choice.

That's when park district officials hit the roof. Their main complaint is that homes don't belong next to Crown Beach for environmental as well as practical reasons, Doyle said.

For starters, the property abuts park land on two sides, and is accessible only through park district land. Without the district's approval, the developer cannot build sewers, utilities or other infrastructure, parks officials say. And the park district does not plan to grant approval, Doyle said.

Doyle said homes are also a bad choice for Neptune Pointe because pet dogs and cats are a threat to waterfowl that rely on Crown Beach mudflats.

The lawsuit is based on the city's failure to conduct an environmental review before changing the zoning.

Russo said the city can't do an environmental review until the developer actually submits a plan, which it has not yet done.

Tim Lewis Communities did not return phone calls.

If the district wins in court, the city's entire housing plan - four years in the making - could be scratched, Russo said.

"It's just mind-boggling to me they're wasting taxpayer money to sue us," Russo said. "The public should really ask itself if this is a good use of resources."